Question : 21.Which of the following statements true about exports? a.Exports important in : 1318236

 

21.Which of the following statements is true about exports?

a.Exports are important in a microeconomic sense, in terms of balancing the trade account.

b.Exporting ultimately leads to a firm achieving diseconomies of scale.

c.Exporting results in a firm being overly dependent on a particular market.

d.Exporting makes a firm sensitive to different demand structures and cultural dimensions.

22.Which of the following is the result of a country’s decision to impose restrictions on its foreign direct investments?

a.Free access to foreign capital

b.Lower interest rates

c.Tightened credit markets

d.Decreased domestic market share

23.How has the U.S. Congress responded in light of persistent trade deficits, growing foreign direct investment, and the tendency of some firms and industries to seek legislative redress for failures in marketplace?

a.It left all trade decisions to be made by the WTO.

b.It organized a ban of imported products which compete with longstanding companies.

c.It provided more powers to the president to restrict trade.

d.It declared “war” on countries that restricted foreign direct investments.

24.“Voluntary” import restraints have been used mainly in areas such as textiles, automobiles, and steel, and are intended to _____.

a.help domestic companies regain their trade prominence of years past

b.show good political citizenship by members

c.penalize exporters of raw materials

d.situate the imports as a political component as opposed to a trade embargo

25.Meat-eats, a business entity located in Miami has recently started promoting “Buying U.S.A.,” a campaign that focuses on the purchase of meat products that are manufactured exclusively in the United States. This campaign would be projected as _____.

a.a nontariff barrier to trade

b.poor public relations

c.significantly helping the international global market

d.increasing the levels of global competition

26.Providing preferential treatment to domestic bidders over foreign bidders, using national standards that are not comparable to international standards, placing emphasis on design rather than performance, and providing for general difficulties in the market entry of foreign products are all examples of _____.

a.import/export quotas

b.protectionistic legislation

c.mixed aid credits

d.nontariff barriers

27.The Export-Import Bank of the United States gives loans known as _____ that are composed partially of commercial interest rates and partially of highly subsidized developmental aid interest rates.

a.untied aid credits

b.mixed aid credits

c.payday loans

d.title loans

28.When U.S. firms work together to establish export promotion development, as allowed by the Export Trading Company Act of 1982, the companies are in effect forming a(n) _____.

a.trading treaty

b.trade promotion authority

c.export consortia

d.export diversification

29.The disappointment with past trade negotiations is mainly the result of _____.

a.lack of funds

b.low global competitiveness

c.excessive competitiveness

d.overblown expectations

30.The authority to negotiate international agreements with a reasonable certainty that the negotiation outcome will not be subject to minute amendments must be given by Congress to the _____.

a.judiciary

b.business leaders

c.functional intermediaries

d.executive branch

 

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